Wastewater Treatment Plant Construction Services Market Procurement Intelligence Report

Construction Service Providers market around the world is undergoing rapid transitions that have a massive potential to influence the way companies strategize for Wastewater Treatment Plant Construction Services procurement and the cost they have to incur. Fluctuation in prices of construction materials has made it difficult for project contractors to maintain a steady cost projection on construction projects. Also, the risks associated with project cost overruns are contributing to project delays and abandonment. Procurement functions are more careful while drawing up supplier contracts and insulating their projects from price uncertainties to the extent possible on negotiation tables.

Periods of macroeconomic uncertainty and increasing stringency of immigration laws are key contributors to the workforce shortage in the market. Domestic workers in developed countries often choose to pursue higher education and less cyclical employment opportunities while foreign workers return to their home countries due to tough immigration laws and economic conditions. Consequently, suppliers have had to increase labor wages to attract skilled and unskilled labor, which has increased their costs and forced them to increase their pricing.

To attract investment and drive long-term value, suppliers are building unique business models and implementing corporate social responsibility (CSR) initiatives and stakeholder engagement programs. Such strategic initiatives are pivotal to acquire a social license to operate, generate consumer awareness, and have easy access to input commodities.

The report discusses in detail the best practices that have served well the category managers responsible for Wastewater Treatment Plant Construction Services procurement.

For example, Buyers must have a clear understanding of the sub-contracting policies of suppliers. Suppliers must be evaluated on factors such as price, quality, and regulatory compliance of their subcontractors before they are selected.

Buyers should engage with service providers that offer a wide portfolio and can act as a one-stop solution provider for multifaceted requirements of projects. This enables buyers to save significant costs and increases their spend visibility.

It is highly recommended that buyers prioritize regional suppliers unless the project specifications are extremely sophisticated and require specialized vendors. A regional supplier base enables buyers to have significant negotiation power due to spend consolidation and exhaustive knowledge of the local codes and environmental regulations. It also insulates them from adverse fluctuations in currency exchange rates.

Wastewater Treatment Plant Construction Services procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Wastewater Treatment Plant Construction Services procurement. Some examples include: